Introduction

Financial modelling is a critical capability in the oil and gas industry, supporting investment decisions, project evaluation, and strategic planning. Given the sector’s capital intensity and exposure to price volatility, robust financial models are essential for analyzing cash flows, assessing risks, and maximizing returns.

This program, designed by Global Horizon Training Center, equips participants with the practical skills and analytical techniques required to build, interpret, and apply financial models tailored to oil and gas projects and operations.

Course Objectives

By the end of this program, participants will be able to:

• Understand financial modelling principles in oil and gas projects
• Build structured financial models for upstream, midstream, and downstream activities
• Analyze cash flows, revenues, and cost structures
• Apply valuation techniques such as NPV, IRR, and payback period
• Incorporate production profiles and price assumptions into models
• Perform sensitivity and scenario analysis
• Evaluate project feasibility and investment opportunities
• Present financial insights for decision-making

Target Audience

This program is designed for:

• Finance and Investment Analysts in Oil & Gas
• Project and Petroleum Engineers
• Planning and Strategy Professionals
• Business Development Managers
• Cost Control and Budgeting Professionals
• Professionals involved in project evaluation and decision-making

Outline

Day 1: Fundamentals of Financial Modelling in Oil & Gas

• Overview of oil and gas project economics
• Key financial concepts and terminology
• Structure of financial models
• Data inputs: production, pricing, and costs
• Introduction to Excel-based modelling

Day 2: Building Financial Models and Cash Flow Analysis

• Developing cash flow models
• Revenue modelling based on production profiles
• CAPEX and OPEX modelling
• Discounting techniques and time value of money
• Model structuring and best practices

Day 3: Valuation Techniques and Investment Analysis

• Net Present Value (NPV) and Internal Rate of Return (IRR)
• Payback period and profitability index
• Break-even analysis
• Project evaluation and ranking
• Decision-making based on financial metrics

Day 4: Risk, Sensitivity, and Scenario Analysis

• Identifying key financial risks
• Sensitivity analysis for key variables (price, cost, production)
• Scenario modelling and forecasting
• Introduction to probabilistic analysis
• Interpreting results for strategic decisions

Day 5: Advanced Modelling, Reporting, and Case Studies

• Integrating financial models with operational data
• Model validation and error checking
• Reporting and dashboard creation
• Presenting financial insights to stakeholders
• Case studies and real-world applications